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Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It

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Posted by:   bobo 3/6/2006 6:18 PM

Patrick Byrne: I have Emails Showing Cramer Is A Liar

 

Look for this new Patrick Byrne interview on RobTV. Go to 5:00 PM. At around the 24 minute mark. Good feature, where the ever-diplomatic Byrne shares the following:

 "There are emails on the CNBC computers that show Cramer was lying when he said he never heard of Gradient."

Pretty definitive – Dr. Byrne is saying Jim Cramer is a liar, and that the proof is on the CNBC computers.

He seemed sure of it. Wonder what he has? How bad is it? And does the SEC know? Wanna bet they do now?

So if that is true, is it bad to be called a liar by the CEO of a publicly traded company, who says he can prove it?

How does one respond to that? It is either true, or it isn’t. Patrick says that it is, and that tells me he has the proof. So Jim, how about a little truth – were you lying, and if so, how much were you lying? A lot? An awful lot? Bigger than a breadbasket a lot? Bigger than a soccer stadium a lot?

And what does Byrne have on you?

Here’s some more fun in the interview:

"…I think the DTCC is run by a bunch of criminals, and I hope they sue me for saying that. They are lying through their teeth." I paraphrase, but only a hair.

He also says that they are trying to frame the story of the fails so that it all seems like a small problem, but they won’t show us the data because it is a big problem. I agree. Totally agree.

Huh. Sounds like Byrne is getting impatient and wants some discovery - come sue me. Affirmative defense would be the truth.

Kinda hard to take that as a softball: Cramer lying, and DTCC lying crooks. Got it.

Bravo, Patrick.
Copyright ©2006 Bob O'Brien
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Comments (38)
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By jcline on 3/6/2006 6:30 PM
Byrne closed with the following statement,

"The DTCC is run by criminals, I think they are committing a crime, and I hope they sue me by saying that".

Make your comments to:
squeezeplay@robtv.com
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By troydian on 3/6/2006 6:31 PM
SEC: Gone Fishin'

A BIG ONE IS GETTING AWAY WHILE IT CASTS AT REPORTERS

By Chris Byron
New York Post
March 6, 2006

It’s good to see that the U.S. Securities and Exchange Commission has come to its senses and that - at least for the time being - it won't be enforcing the media subpoenas that have gotten the press so riled up.

But before anyone breaks out the pom-poms for SEC Chairman Christopher Cox, let's remember that these wrong-headed subpoenas were 100 percent the responsibility of Cox's own agency in the first place - and until the SEC develops better, more focused leadership, problems like those caused by these subpoenas are going to keep occurring.

What's more, while the SEC has been chasing after wrongdoing by hedge funds that may not even have occurred, real examples of hedge-fund misconduct have gone ignored.

Consider the Lancer hedge fund case, which has been rotting like a dead fish in the agency's own files for years.

Two weeks ago, a federal judge in Miami unsealed more than 40 pages of internal e-mail, memos and similar materials produced in the Lancer hedge fund fraud case, which developed out of a series of articles that ran in The Post almost four years ago.

This latest round of Lancer documents had been produced, under a court-ordered subpoena, by the fraud-drenched fund group's administrative and record-keeping firm, Citco Fund Services. The Citco brass had fought tooth and nail to keep the documents sealed, and it's not hard to see why.

Even a casual reading of the unsealed case file shows that Citco's profit-crazed officials were fully aware, year after year, of the flagrantly false and fraudulent accounting that turned Lancer into a $1.2 billion house of cards.

Worse, the documents show that almost to the moment of Lancer's collapse in the summer of 2003, Citco bigwigs spent much of their time fretting over how they could extricate Citco - and themselves - from the Lancer fiasco before being dragged down in the collapse that was certain to come.

There is e-mail between Citco officials warning that the fund was deeply engaged in price-rigging schemes involving an array of worthless penny stocks. Other documents, one dating from as far back as autumn 1996, warn that rampant accounting skullduggery was affecting the funds' net asset values.

One remarkable e-mail message from May 2002 shows Citco officials scheming to get Lancer's outside auditors at PricewaterhouseCoopers to "sign off" on the fraud so that Citco wouldn't wind up being accused of orchestrating a coverup on its own.

THE memo warns, "This would be very bad news for us."

Elsewhere in the memo, the author - Citco official John Verhoorfen - suggested alerting U.S. law enforcement, offering an astonishing rationale for doing so: "At least that way it looks like we uncovered the problems."

All this and more has sat unpursued in the SEC case file for years while the agency has waged a faltering struggle to develop a case not against Citco and Lancer's equally vulnerable and complicit accounting firms, outside auditors and bank custodians, but merely against the fund group's founder and managing director, Michael Lauer.

In any event, the most the SEC can hope for is a fine and an injunction from further fraud. By contrast, a case against Citco would not only have been far easier to prove, but would have yielded a much larger fine than anything likely to be slapped on Lauer. +

And most important of all, pursuing a case against Citco would likely have led to a high-visibility criminal referral to the U.S. Department of Justice years ago, sending an unmistakable message to the entire hedge-fund industry that those who break the law will go to prison.

But the SEC has done nothing of the sort, choosing instead to spend its time frittering away its resources on conspiracy snipe hunts like the one inolving the subpoenaed e-mail of three journalists.

This is all happening because, as I have argued many times in this space, the SEC is a poorly led, bureaucratic anachronism from the New Deal that lacks a mission relevant to the times and the enforcement tools to get the job done.

As such, it has been functioning for the last half decade in a climate marked by revolving-door leadership at the top, staff defections in the middle ranks and bewilderment at every level regarding the types of activities the agency's enforcement division ought to be looking for when it comes to improper and illegal behavior by hedge funds.

Against that backdrop, the SEC has developed into one of the most troubled and demoralized - yet intensely politicized - agencies in the entire federal government, with the once-coveted job of SEC chairman becoming one of the most shunned hot seats in Washington.

For the first six months of his first term, President Bush couldn't even find a replacement for the departing Arthur Levitt, helping bolster the impression that this was a job no sensible person wanted.

The man Bush finally signed up, white-collar criminal defense lawyer Harvey Pitt, lasted 18 months before pushing the self-destruct button. After Pitt came William Donaldson, a Wall Street old-timer who was hounded out of office after two years.

Donaldson's tour ended when he impaled himself on a pledge to bring the unregulated world of hedge funds to heel by forcing them to file regular financial statements with the SEC, the same way mutual funds do.

After Donaldson came the current occupant of the office, Cox, who arrived on the scene last August.

Anxious to deflect speculation that he planned to let Donaldson's newly enacted hedge-fund reporting rules become dead-letter law through lax enforcement, Cox said he intended no such thing and expected the rules to be enforced exactly as written.

Now, of course, he's got exactly the opposite problem, courtesy of subordinates who apparently took his comments as a thumbs up for a hedge-fund jihad, and thereupon launched themselves on a subpoena-backed fishing expedition through the e-mails of three journalists.

This isn't how any agency of government should be run, but it's been standard operating procedure at the SEC for years. And don't count on it changing anytime soon - especially now that Cox has managed to dial down the volume on the whole affair.

Besides, out here in the short attention span theater of American life, a person can only stand so much of anything before reaching for the zapper. A night at the Oscars? Some quality time with the gang at "Law & Order SVU"? Maybe some of the overnight action from Baghdad. The mind reels, it's all a blur . . . Zzzzzzzz
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By RubeWaddell on 3/6/2006 10:44 PM
They're high on the feeling of power and the $$$.
Jimmy moves stocks with the flapping of his lips. Anyone privy to what stocks he's going to talk about that day?

Keep on keepin' on Bunnyman, Gotta run, I hear a fire engine
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By mhatmccane on 3/6/2006 11:44 PM
It is truly great to see the good Dr. getting a chance to get his story out - rather than going into the ambush that Kudlow set up. Perhaps the next move may be to hit the non-NY/Wall St. Press-(Washington,Atlanta,Boston,Chicago,St.Louis,Kansas City,Dallas,Los Angeles, San Francisco, Seattle, Salt Lake City, Denver).
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By adegracia1950 on 3/7/2006 2:04 AM
It looks to me like "What goes around, comes around".
Patrick"s interview was a great start for the week.
The first balanced interview is but a trickle through the crack in the dam, let's hope more true journalists pich up on this.
It is too bad that Patrick had to use Canadian air time to get some fair play.

Alan
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By J on 3/7/2006 4:37 AM

Some observations...

O' Leary is a turd, Lang is cuter than Maria B., and:

By this decades end American investors will be celebrating Dr. Patrick Byrne.
Cramer and the DTCC have just been called out & the piano has stopped By Helpmakilt on 3/7/2006 5:08 AM
This is just like the Western's, PB has on a tall white hat and has just called JC (black hat) a liar, the piano player has stopped playing and there is an expectant silence in the room. JC either has to fight or slink away like the skunk he is, either way he loses (credibility) and he knows it............................what good is a self proclaimed TV expert without creibility ? Wait, what's that noise? a bunch of guys in black hats have just ridden out of town, it's the DTCC gang, wonder where they are running to?

As I have said many times before, my hat (white) is off to PB, EB, DDD and all of the rest who are standing up and being counted. Keep it up, like the Westerns, it looks like the white hats are definitely coming out of this on top.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By troydian on 3/7/2006 6:17 AM
J, so long as OLeary see clear now.. end of the decade? I have ..along with many other very good persistant folks. been fighting these criminals with all my heart and soul for what seems like an eternity... NOW IS THE TIME..
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By Cramer on 3/7/2006 7:12 AM
I read somewhere that he lets his subscribers know what stocks he is going to slam or pick on TV each day.

https://secure2.thestreet.com/cap/login/aap_bridge_navlink.jsp?flowid=958c8a05&url=http%3A%2F%
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By bbhindyou on 3/7/2006 7:29 AM
Can I have a fantasy about what real justice would be?The supreme court ordering the dtcc to turn over all records of the stock borrow program back to the inception back in the 80's.We will never get the money back but at least we would know where it went.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By Anon. on 3/7/2006 7:46 AM
I may be living in a fantasy world, but Dr. Byrne should declare that those who own OSTK on such and such a date will be rewarded with a one time dividends consisting of all monies won in civil cases again the miscreants. If that totals $4B, that would be $211/share reward for hanging in there for Truth, Justice and the American Way!
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By troydian on 3/7/2006 8:46 AM
yes anon, BUT there are more than double (in reality) REAL shareholders..
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By hwh on 3/7/2006 12:37 PM
Cyna: Take it one step farther: Cramer also claimed the only time he met Rocker was in the produce section of the A 7 P supermarket. Right? The #1 revenue producer only met "the man" co-incidentally? Cramer has been "posturing" for this eventuality for years now. A pattern of deceit is admissable in court & Cramer's ability to act as a character witness in in terrible jeapardy. He may well become(be) a defendant. Discovery will determine actionability to a large extent...hwh
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By cynabear on 3/7/2006 4:50 PM
Ahhhhhhh hwh therein lies the rub...Cramer as character witness HAHAHAHAHAHA......why didn't I think of that ...I really am rolling on the floor laughing....and yes I agree with you about the posturing to distance himself from "the usual suspects" , I was just pointing out that it will be their actions that will hang them all(i hope)...can't wait for discovery...
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By troydian on 3/6/2006 6:33 PM
http://www.rgm.com/articles/FalseProxies.pdf
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By hwh on 3/6/2006 6:36 PM
Dr. Byrne has at least one big advantage; he does not have to remember his story. It will be interesting watching the others try to get theirs' straight...hwh
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By Niel Storts on 3/6/2006 6:57 PM
We have more than one recurring theme here. The first remains the dribble from the usual sources. The second is stated with clarity. First by Dr. Brynes, seconding Vernon Smith. He's the judge presiding in the Marin trial by the way. What were his exact words ............ "reckless disregard for the truth"......Seems to ring a bell. That was his statement when dismissing the anti slapp motion filed by the crooks. Things don't look too rosey when the judge of what is in essense a trial regarding honesty to render a decision that states......... You are a pack of f#@king liars.......Small wonder the lads are becoming more strident as this unfolds.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By mfairview on 3/6/2006 6:59 PM
Is there a transcript from Marin?
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By dave on 3/6/2006 7:01 PM
Why would the NSCC be willing to take less collateral as the price of the shares declined.

Some pretty smart people own the DTCC which owns the NSCC. Why would they be willing to let the brokerages withdraw collateral when clearly that exposed the "limited liability incorporated" private company, the NSCC to unlimited risk in a squeeze?

Who would be willing to pass the risk of a squeeze from the offshore brokerages and hedge funds to the limited liability clearing companies and the limited liability NSCC?

A different question that I think deserves an answer is WHO OWNS THE DTCC? and WHO OWNS CEDE & CO?

Cede & Co. is the ACTUAL REGISTERED OWNER of any shares in your brokerage account, but the trustee that manages Cede & Co. (the Depository Trust) refused to tell investors who owned them, who the directors were, where it was incorporated, etc.?

Talk about your lack of transparency.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By Just Someone on 3/6/2006 7:06 PM
What difference does it make if he says on tv that he didn't know who Gradient is? He could say he didn't know who Herb Greenberg is and if he's not on deposition it doesn't matter.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By rtway1 on 3/6/2006 7:07 PM
To all OSTK shareholders, ask for delivery of your shares from your broker and keep the orders coming in at our company for all of our needs. We are gaining speed, lets keep it up, certainly Patrick and our bunny have!
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By InTheKnow on 3/6/2006 7:20 PM
In the Marin case. remember:

THEIR LAWYERS QUIT! THEIR LAWYERS QUIT! THEIR LAWYERS QUIT!

Point! Set! Match!
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By rtway1 on 3/6/2006 7:46 PM
Just knowing that the good Dr. has the goods on Jimmy gives me a warm and fuzzy feeling all over and probably gives the shivers to a lot of scum who visit this site. So if Jimmy is on the deposition or not doesn,t mean he can not be on one later. To say Cramer is a liar is as easy as saying there is a tommorrow.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By CMElec on 3/6/2006 7:54 PM
EB,

I feel frustrated that I can't rec some of the posts here. Many are so very good and right on target. Your work is finally bearing fruit. All must at least applaud that.

I look forward to events going forward.... not for anything that I may gain, but because it is so right and so needed, and so timely.

Thank You for seeing this through.

CMElec
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By bobo on 3/6/2006 7:58 PM
Golly, just someone, I guess it matters if you count being a frigging lowlife liar as a negative. Maybe some don't care if their pundits lie, and are caught lying.

Most do care.

That you don't know why it matters that our adversaries are liars and cheats would be amusing if it wasn't so sad...
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By Niel Storts on 3/6/2006 8:07 PM
"Bob". Some folks gear their accountablity to an internal set of values. ie: "is this honest?" Can I maintain my self respect and do x, y, or z???????? Some folks judge if there will be punitive prices to pay. Seems that most people tend to overlook things that have no personal value to them. Thus honorable human animals value honor. Those with no honor place a lesser value on such things. As I have said before. Know what you are fighting.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By mhelburn on 3/6/2006 8:12 PM
In The Know,

I read the papers in the OSTK lawsuit and I wondered why the defendants' arguments sounded like Tony Ryals had written them. Maybe he did!

Kevin on RobTV..the good twin. He was much better behaved today than when Schapiro was on there. Talk about a turn around!!!
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By cynabear on 3/6/2006 8:34 PM
I love the fact that PB is calling it like it is....but the fact that Cramer or the scum at the DTCC lie is not the issue...it is whether the lies are actionable, are they involved in a cover up or illegal or faudulent activity....just lying... or stretching the truth well that is business or normative life 101 for some of these guys.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By InTheKNow on 3/6/2006 8:35 PM
Maybe he discovered Sam-E or rethunk naked shorting.

I think as the good Dr. says, people in Washington are realizing what is really going on here and it can became contagious.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By n-tres-ted on 3/6/2006 8:38 PM
In The Know, what do you mean their lawyers quit? Do you have a link? Thanks.

mh, you're so right that O'Leary was a completely different fellow than the last time his discussed this subject. As I recall, he was the one who uttered those immortal words: "Sure if you're big enough you can naked short!" or something to that effect. Happy to see his change of direction.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By RubeWaddell on 3/6/2006 8:46 PM
Hmmmm, How to spin this...
I know, see, Jimmy wasn't lying when he said he'd never heard of Gradient before, cuz at that time they were called Camelback. I'm sure, if asked, Jimmy would suddenly remember he forgot they changed their name to Gradient. Just a simple slip up, no biggie, just like the time he first met Rocker in a grocery store.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By wordisgettingout on 3/6/2006 8:53 PM
http://www.thelebrechtgroup.com/journal/journal_comments.asp?JournalID=4&PagePosition=
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By Niel Storts on 3/6/2006 9:00 PM
Cynabear. Actionable is not the point. Honesty is the point. Why do you think the "journalists" are so defensive? (besides the fact that the ones pullimg thier chains are paranoid, of course) Their position in this little drama is to mold public opinion. That is the whole reason that they have any value. When they are demonstrated to be liars for the world to see. Noone with half a brain would be influenced by any of the dribble that is their stock in trade. Then there would be a diminished value placed on them selling themselves to the highest bidder. Result is less money in their grubby little hands.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By rtway1 on 3/6/2006 9:06 PM
In order to keep the gravy train running in Washington the pols have to keep the people ill informed or just plain bullshitted. Because of this great communication media we have we can exchange relevant facts and truths in , as Dave Patch says, nanoseconds. These nanosecond revelations from the likes of Bud Burrell, Mark Faulk, Dave Patch are combined decades of research that have proof pouring out of them. Combine that with the ability to equate these revelations into examples of manipulated fraud that have cost , us the voters, a lot of lost money, this nanosecond communication media is a political deathwish at the wrong end. The votes dry up and so does the donations, not to mention the immeasurable loss of your parties reputation for doing nothing while we were fleeced. I can fully understand the good Dr,s statement about Washington,s finest getting a sense of reality that they hadn,t bargained for. Gravy train might be running low on fuel here.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By clearthinker on 3/6/2006 10:04 PM
Unbelievable...is this the same Kevin O' Leary that grilled Robert Shapiro just last week? Clearly, something has changed....a completely diffferent tone....19mm shares issued...35-40mm shares owned (at least)....Patrick has taken off the gloves...let's get ready to rumble.....
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By rvac106 on 3/6/2006 10:17 PM
Couple o' things.

1. Great spot, http://www.thelebrechtgroup.com/journal/journal_comments.asp?JournalID=4&PagePosition=
This is what we need. Attorney's advising their investing clients to find out what the heck is going on. We need more.

2. Bobo, I forged your signature to a comment at the above attorney's website. I hope my english was well enough to measure up to your high standards.

3. Quote of the week, till the next good one comes along:"......a great big, U.S. government-grade, hot fudge high colonic (is) getting whipped up for some fellows on Wall Street." Ah, the beauty of a well turned phrase.....

Carry on.

RVAC
OT: GW's blog link By RubeWaddell on 3/6/2006 10:24 PM
Gary has stopped his ad @Google, when typing in "TheSanityCheck". I wonder if he got a lot of clicks, but no book sales.
Re: Dr. Byrne: Jim Cramer Is A Liar, And I Can Prove It By bobo on 3/6/2006 10:36 PM
I think that he probably was just embarrassed. Hard to claim you are the good guy when you are clearly behaving like a scumbag.

You know, it's interesting. I've faced off against some fairly heavy hitters in my time - not the navel lint that 'lil GW represents - I mean serious intellects with a ton of money. And at the end of the day, they might have hated my guts, but there was grudging respect there - they understood their adversary had delivered better than he had taken, and appreciated the craft of it, the art, some might say.

There is no sense of that in this, with people of that ilk. It is another way of saying that our adversaries have no honor. That they consider the notion of honor or ethics a silly artifice speaks volumes. Being a liar and a cheat is OK, as long as the gravy train's a rolling.

Classic socio-pathology.

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